The Comparative Balance Sheet of XYZ Inc. for December 31, 2019 and 2018 is shown as follows: 12/31/19 12/31/18 Assets Cash $625,760 $585,920 Accounts Receivable 227,840 208,960 Inventories $641,760 $617,120 Investments 0 240,000 Land 328,000 0 Equipment 705,120 553,120 Accumulated Depreciation-equipment (166,400) (148,000) Total Assets $2,362,080 $2,057,120 Liabilities and Stockholder’s Equity Accounts payable (merchandise creditors) $424,480 $404,960 Accrued expenses payable(operation expenses) 42,240 52,640 Dividends Payable 24,000 19,200 Common Stock.$4 par 150,000 100,000 Paid in Capital-common stock 417,500 280,000 Retained earnings 1,303,860 1,200,320 Total Liabilities and Stockholder’s equity 2,362,080 2,057,120 Additional data obtained from an examination of the accounts in the ledger for 2019 are as follows: The investments were sold for $280,000 cash. Equipment and land were acquired for cash The common stock was issued for cash There was a $ 199,540 credit to Retained Earnings for net income There was a $96,000 debit to Retained Earnings for cash dividends declared Instructions: Prepare a statement of cash flows using the indirect method.
The Comparative Balance Sheet of XYZ Inc. for December 31, 2019 and 2018 is shown as follows:
12/31/19 12/31/18
Assets
Cash $625,760 $585,920
Accounts Receivable 227,840 208,960
Inventories $641,760 $617,120
Investments 0 240,000
Land 328,000 0
Equipment 705,120 553,120
Total Assets $2,362,080 $2,057,120
Liabilities and
Accounts payable (merchandise creditors) $424,480 $404,960
Accrued expenses payable(operation expenses) 42,240 52,640
Dividends Payable 24,000 19,200
Common Stock.$4 par 150,000 100,000
Paid in Capital-common stock 417,500 280,000
Retained earnings 1,303,860 1,200,320
Total Liabilities and Stockholder’s equity 2,362,080 2,057,120
Additional data obtained from an examination of the accounts in the ledger for 2019 are as follows:
- The investments were sold for $280,000 cash.
- Equipment and land were acquired for cash
- The common stock was issued for cash
- There was a $ 199,540 credit to Retained Earnings for net income
- There was a $96,000 debit to Retained Earnings for cash dividends declared
Instructions:
Prepare a statement of cash flows using the indirect method.
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